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FICO Credit Scores, Approaching 850 scores Series #9

FICO Credit Scores, Approaching 850 scores Series #9

My own FICO-9 score peaks at 832 of 850 possible and I have not applied everything I know. I don’t want to do those two things.

This will be a LONG series of advice and comments. Keep coming back!!

Trick question to challenge people who call themselves FICO score experts but really are not:

What type of installment* loan can you pay completely on time, pay off in half the time allowed and it still costs your FICO score tens of points, maybe 50 points in some cases just by being on your credit reports?

* Installment loans borrow a specific amount of money with the same monthly payments like vehicle and student loans.

Hmmm? Well, what is your answer?

Obviously you don’t want an installment loan like that on your credit report, right?

It is the type of loan you get too easily and at extremely high interest rates. The first one I ever saw was called “Cash Call”. “Make the cash call” and the spokesperson was a small man who had been a child actor. Rodney someone maybe?

Cash Call only reported on two of the three credit reports, everything else on my client’s report years ago was on all credit reports. He paid on time, paid the 136% interest rate loan early.

The two credit reports with Cash Call on them had FICO scores

Types of Collection Accounts – Collection Account Series #11

Types of Collection Accounts

Types of Collection Accounts

Read the entire Series about this subject to understand everything before you DO anything about a collection account because you can seriously harm your FICO credit scores if you don’t study and apply what I know. More is to come!!

There are several different types of collection account. I break them down as follows:

Collection Agency, collects for other companies

Debt buyer, buys debts from other companies and collect for themselves.

Original Creditors, these are who you actually owe. Here’s a breakdown of these types:

Credit card or loan charge-off

Vehicle repossession debt, also a “collection” or ‘charge-off”

Judgment, the original creditor sued you and won

My firm deals with each TYPE of collection and each company different. We have two jobs:

  1. Get as much discount for you as we possibly can

  2. Get the deletion from all 3 credit reports if at all possible.

And we’re better than the lawyers I know at both of these jobs.

 

FICO Credit Scores, Approaching 850 scores Series #8

FICO Credit Scores, Approaching 850 scores Series #8

My own FICO-9 score peaks at 832 of 850 possible and I have not applied everything I know. I don’t want to do those two things.

This will be a LONG series of advice and comments. Keep coming back!!

Did you know that waiting until near the due date to pay your credit cards is hurting your FICO credit scores?

ADVICE: Pay your credit cards in full two days BEFORE the end of the statement billing period.

Why?

Because your balances are generally reported within a couple or few days after that month’s statement cuts off, right when your balances are at their highest.

As most people these days know, the higher your credit card balances, the lower your FICO scores.

FICO Credit Scores, Approaching 850 scores Series #7

FICO Credit Scores, Approaching 850 scores Series #7

 

My own FICO-9 score peaks at 832 of 850 possible and I have not applied everything I know. I don’t want to do those two things.

This will be a LONG series of advice and comments. Keep coming back!!

In the previous blog post, I gave some of the ways I avoid ever paying late and severely damaging my credit.

When my PAPER statements come in I immediately set up a calendar item to pay before the due date. I live by my calendar.

I would NEVER set up automatic payments anyway but if I did they would NOT be attached to my debit or credit card. These get lost or have fraud too often and that problem can cause late payments.

I don’t want companies auto-debiting from my account.

If you love auto-pay then use “bill pay” from your checking account and PUSH the money to the creditor. This way if auto-payment ever fails (aside from insufficient funds) then it is a “bank error” and the late payment can come off your credit reports!

FICO Credit Scores, Approaching 850 scores Series #6

FICO Credit Scores, Approaching 850 scores Series #6

My own FICO-9 score peaks at 832 of 850 possible and I have not applied everything I know. I don’t want to do those two things.

This will be a LONG series of advice and comments. Keep coming back!!

This piece of advice for highest possible FICO scores may be a no-brainer but I am seeing more of this credit problem than EVER before and it is HARD to get off the credit reports.

ADVICE: Do everything possible to avoid late payments on debts you should pay monthly.

I personally do NOT get my credit card statements online, I make them mail them to me.

I personally do NOT do automatic payments. I have seen that fail too often causing late payments.

I would NEVER co-sign a loan for someone else if they don’t pay on time my credit gets trashed too. AND I’m responsible for the debt.

As a credit repair guy can you imagine how many charged-off debts, late payments, and vehicle repossessions I have seen on co-signers’ credit reports? A lot. And its prevented people from buying homes.

My online calendar lets me know when to expect my paper bill statements so if it doesn’t come in the mail I’m never late.

FICO Credit Scores, Approaching 850 scores Series #5

FICO Credit Scores, Approaching 850 scores Series #5

 

My own FICO-9 score peaks at 832 of 850 possible and I have not applied everything I know. I don’t want to do those two things.

This will be a LONG series of advice and comments. Keep coming back!!

Today’s advice: Never, ever close any of your older credit cards. Generally, I don’t think any cards should be closed unless you opened one in the past couple of years AND your card balances are quite low or zero.

FICO Credit Scores, Approaching 850 scores Series #4

FICO Credit Scores, Approaching 850 scores Series #4

My own FICO-9 score peaks at 832 of 850 possible and I have not applied everything I know. I don’t want to do those two things.

This will be a LONG series of advice and comments. Keep coming back!!

In the previous blog, I gave a fantastic secured credit card possibility up to an $8000 line of credit.

Remember that credit cards achieve much better FICO credit scores when the credit limit is at least $2500.

Some people will be declined for that Comerica secured card because their credit scores are too low and NO other card will give that magical $2500 limit.

What to do?

I suggest a SPECIFIC card to apply for and no other: Capital One. They may only grant you a $250 to $750 limit, but if you have no other open credit cards then this card will help.

Really, don’t bother with other cards, not Credit One, not First Premier, not others. The reasons are from my own experience.

Once that Capital One card has been used and paid to $0 balance for 31 days then try the Comerica card again. Your credit scores may have recovered enough from the Capital One card.

Credit News Series #6 – Alternate Credit on “Experian Boost”

Credit News Series #6 - Alternate Credit on - Experian Boost

 

Experian ‘Boost’ Improves FICO Scores

Experian is offering a new way to get good credit onto your credit reports. This is only useful for people without good, open credit now. Those who have older open accounts do not likely need this.

The product is called Experian Boost. Here is an article on it… Experian ‘Boost’ Improves FICO Scores Via Data

Credit News Series #5 – Increase in Lawsuits on Bad Debts

Credit News Series #5 - Increase in Lawsuits on Bad Debts

Increase in Lawsuits on Bad Debts

There is no question that credit card companies are using vast numbers of people who failed to pay and defaulted on their credit cards.

In my 17 years helping people with their debts I cannot recall such a high percentage of my clients being sued as over the past year or two. Lawsuits have been filed over as little as $900 of debt!

The most important for you to know if you defaulted on a debt and get served a lawsuit: DON’T pretend it didn’t happen. You can have a lot of agonies if you do not face the problem.

You MUST answer the lawsuit, each state gives how many days you have to file your answer to the lawsuit.

Failure to answer a lawsuit will only give the other side an easy time getting a judgment against you. It is called a default judgment.

With a judgment, your wages can be garnished (money taken from your paychecks) or money can be taken from your bank account. If you own real estate then a lien can be placed on the property.

If you cannot afford a debt defense lawyer to answer the lawsuit then look for a paralegal with the correct experience to write an answer for you to file with the court in time. Paralegals should be overseen by a lawyer.